Experts see up to 15% growth in auto index in FY19; Maruti, M&M top picks

Status quo on rates by the RBI and a good monsoon to aid demand, analysts say

The automobile sector, which witnessed a healthy sales growth in the previous financial year (FY18) led by higher demand from rural markets and the fast growing SUV segment, should continue to do well in the new fiscal year (FY19) as well.

 

Analysts’ optimism stems from a pick-up in demand going ahead, which they expect not only from metros, tier-1 and tier-2 cities but also from semi-urban and rural areas. That apart, scaling up of investment, moves and initiatives taken by the government towards electric vehicles will have a sizeable impact on the demand going forward in FY19, they say.

 

“Our sense is